English, asked by saniakha341, 4 days ago

what is black money and how is it produced? answer in 150 words.​

Answers

Answered by hemangibachhav241
8

Answer:

Black money is the money which comes from corrupt people and the money which hidden from government authorities and its produce from illegal work. It is something illegal and holding it is anything but what exactly it is? So its unethical earned through two different process . one kind is where income is generated from illegal activities such as extortion, trafficking drugs and corruption. Another kind is where it has been earned in legal activities,but on which taxes and other deus are not paid to the government authorities at the Central state or local levels.

Explanation:

This extract comes from the Success Avenue book of B.Com. the unit 2 black money and the black economy

Answered by crkavya123
4

Answer:

All money made illegally or otherwise lawfully that is not disclosed to the government for tax purposes is referred to as "black money." Black money revenues are typically made in cash through illegal economic activity and are thus exempt from taxes. People who receive black money must either conceal it, use it solely in the shadow economy, or attempt to legitimize it through money laundering.

Explanation:

what is black money and how is it produced?

Now that we are aware of what black money is, let's discuss how it is produced. (If you're not sure, ask again, and I'll do my best to clarify.)

It's difficult to produce dark money.

This particular business was in the red on paper for more than 20 years. Did I examine their operations more closely for so long as auditors? These have to do with production. In their factory, there were 8 machines. The factory and the office were both on the same property, so checking things after a filling lunch required little more than a quick stroll.

Keep in mind that a business relies on the following basic principles: obtain raw materials, process them, and then sell the finished product for more than you paid for it plus your expenditures. Loss results from a sale that falls short of the purchase price and process costs.

So, profit/(loss) equals sales minus (purchases plus cost).

This specific business had fewer book purchases and sales. Which demonstrated the losses adequately. The remaining purchasing and selling were done using cash.

The real output was substantially higher than the acquisitions depicted in the book, which prompted suspicions. Additionally, the ending inventory had more goods than the final inventory report did.

In essence, they conducted cash sales and cash purchases simultaneously. Cash profit was a parallel business concept that meant cash sales minus cash purchases. Other businesses suffered losses. I-T earnings were made using these losses.

In essence, they steal all profit the business generates. Their sector's net profit was 17%, and the whole revenue was not far from 36 kroons. Assuming that their unexplained sales were about Rs. 50 crore, their profit would have been about Rs. 8.5 crore. In other words, tax avoidance results in savings of Rs. 2.55 KR.

This audit was my first. There were more of these audits and procedures. You then understood that this is typical for businesses.

Consider the fact that the company mentioned above purchased raw materials from another company, which also traded in illegal goods and so had access to illicit funds.

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